NEW YORK (Reuters) - Cablevision Systems Corp. posted a higher profit Thursday, but shares fell as it added subscribers Internet and telephone less than expected in his heart of the New York area.
Shares dropped about 2-1/2 percent as investors line venerate yet that Cablevision lost of video subscribers more than expected in the region of New York.
Chief Operating Officer Tom Rutledge said on a conference call there were still weak economy, particularly in some of the poorer neighbourhoods it covers.
The company lost 7 000 video subscribers while analyst Collins Stewart Thomas Eagan had planned additions of 2,000 video subscribers. The company also faces fierce competition from digital video service to New York Verizon Communications Inc., yarn.
Eagan said that Cablevision has still not completely recovered from client losses related to its prohibition of 15 days in some Fox channels last October.
Cablevision business at New York-based added 22 000 subscribers to the Internet and 34 000 telephone lines.
Eagan had planned additions of 26,000 subscribers to the Internet and 40,000 telephone lines.
"The results were flat overall," said Eagan.
Overall Cablevision, including its recently acquired, Bresnan Communications properties has added more than video, Internet and phone customers.
Cablevision gains were low in comparison with the strongest performance of the largest operators of cable rated Comcast Corp. and Time Warner Cable Inc. for the first quarter.
Cablevision, which is controlled by the Dolan family, said he received in the neighbourhood of the acquisition of the smaller cable undertaking Bresnan, which closed on December 14. It plans to abandon the use of the Bresnan mark in Western shows on May 12.
Executive Vice President Gregg Seibert, said that the company would seek to several acquisitions, at the best price.
"We will continue to look at acquisition opportunities," said Seibert. He said that any other acquisition analysis would be similar to the "intense" analysis undertaken with Bresnan.
Net income increased to $ 104.1 million, or 36 cents per share, of 74.2 million, or 27 cents per share, a year earlier.
Income increased by 9.7% to $ 1.92 billion.
The company said it remains on track with its previously announced spinoff of Rainbow Communications, its cable network unit that owns the AMC, IFC and Sundance, among others.
Cablevision has said Rainbow networks AMC will be renamed when spin-off later this year. Executives, said that the company has already reached an agreement with Nasdaq for a list of exhibits.
"We have always a"buy"rating Cablevision because we believe that it is value created with the spin-out of Rainbow," Eagan said.
Cablevision shares fell 89 cents or 2.5 34.38% $ to the New York Stock Exchange.
(Reporting by Yinka Adegoke, editing by Gerald e. McCormick and Lisa Von Ahn)
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